How bullish were tech analysts in telecoms heyday?
After Congress deregulated the telecommunications industry in 1996, technology analysts asserted that hundreds of competitive local exchange carriers, web hosting providers, long-haul carriers and other startups had innovative business models that would allow them to succeed in the new economy. Before the Internet boom went bust, many researchers seemed to figure broadband would mean endless wealth for a seemingly endless number of companies. A senior telecom analyst at market research firm The Yankee Group says founder and former president Howard Anderson “pretty much kept the company reined in when it came to the Internet boom.” The analyst says the firm was more bullish on competitive local exchange carriers than long-haul providers. The analyst also insists The Yankee Group was less optimistic than Wall Street. “I would say 50 percent of the time we are in disagreement with what is going on with the Wall Street firms,” the analyst says. “More often than not it is the bullish nature
